Investment Rating - The report gives a "Buy" rating for the company, marking its first coverage [1]. Core Views - The company is a leader in precision structural components for cylindrical batteries and is expanding into the robotics sector through an investment in Guohua Intelligent, aiming to create a second growth curve [2][3]. - The company has maintained a market share of over 25% in the domestic cylindrical battery structural component market for 24 years and is expected to achieve a revenue of 1.365 billion yuan in 2024, a year-on-year increase of 23% [2][3]. - The company is positioned to benefit from the growing demand in the humanoid robot market, with projections of 3 million units sold globally by 2030 [3]. Financial Summary - The company's total revenue is projected to grow from 1.11 billion yuan in 2023 to 2.56 billion yuan in 2027, with a compound annual growth rate (CAGR) of approximately 20% [1]. - The net profit attributable to the parent company is expected to decline to 56.26 million yuan in 2024 but is projected to rebound significantly to 127.46 million yuan by 2027 [1]. - The earnings per share (EPS) is forecasted to decrease from 0.53 yuan in 2023 to 0.35 yuan in 2025, before rising to 1.11 yuan in 2027 [1]. Business Segments - The cylindrical battery structural components segment is expected to generate 8.3 billion yuan in revenue in 2024, reflecting a year-on-year growth of 37.2% [4][52]. - The company has established partnerships with leading manufacturers such as Yiwei, Dongci, and CATL, which is expected to enhance its market share further [4][55]. - The nickel-based conductor materials segment is projected to grow steadily, with a revenue increase of 5-10% anticipated in 2025 [9]. Robotics Sector - The company has entered the humanoid robotics market by acquiring a 10.37% stake in Guohua Intelligent, which specializes in harmonic reducers and has secured orders from leading robot manufacturers [3][4]. - The collaboration with Guohua Intelligent is expected to create synergies in technology and customer base, positioning the company as a key supplier in the robotics components market [3]. Market Outlook - The global cylindrical battery market is projected to reach a demand of 128.2 billion units in 2024, with a year-on-year growth of 3.6% [40][49]. - The company anticipates that the cylindrical structural components market will reach over 9 billion yuan in 2025, with sustained growth of over 10% in subsequent years [49].

Investment Rating - The investment rating for the company is "Buy" with a target price of 171 CNY [1][8]. Core Insights - The company reported a significant revenue increase of 45.8% year-over-year (YOY) for the first half of 2025, achieving 251 million CNY, and a net profit increase of 45.9% YOY, reaching 53 million CNY [9][11]. - The growth in revenue and profit is attributed to the recovery in demand for robotic components, driven by the expansion of the electric vehicle sector and the recovery of consumer electronics [11]. - The company is focusing on enhancing its presence in the embodied intelligence sector, aiming to create a second growth curve by expanding its product offerings in harmonic reducers, ball screws, and actuators [11][15]. Company Overview - The company operates in the mechanical equipment industry and has a market capitalization of 27.034 billion CNY [2]. - The stock price as of August 18, 2025, is 147.46 CNY, with a 12-month high of 192.64 CNY and a low of 58.17 CNY [2]. - Major shareholders include Zuo Jing, holding 18.5% of the shares [2]. Financial Performance - The company achieved a historical high revenue of 153 million CNY in the second quarter of 2025, representing a 69.5% increase YOY [9][11]. - The gross profit margin for the first half of 2025 was 34.8%, a decrease of 5.6 percentage points compared to the previous year [11]. - The company plans to increase its net profit forecasts for 2025, 2026, and 2027 to 100 million CNY, 140 million CNY, and 190 million CNY respectively, reflecting YOY growth rates of 86%, 35%, and 36% [15]. Product Mix - The product mix includes harmonic reducers and metal components (78.3%), mechatronic products (16.6%), and intelligent automation equipment (3.2%) [4]. Institutional Ownership - Institutional investors hold 11.0% of the circulating A-shares, while general corporations hold 11.2% [5].

Core Insights - The core component of humanoid robots is the planetary roller screw, which costs over 10,000 yuan per unit and accounts for 19% of the total machine value, directly influencing joint performance [1][3] - The planetary roller screw is essential for converting linear motion to rotational motion, functioning similarly to a planetary gearbox [3][6] Industry Overview - The planetary roller screw is widely used in industrial automation, CNC machine tools, aerospace, and automotive manufacturing [3] - The upstream supply chain primarily uses alloy structural steel for screws, while nuts and rollers are made from high-carbon chromium bearing steel, with current market prices exceeding 5,000 yuan per ton for foreign materials and over 10,000 yuan per ton for domestic materials [3][6] Technological Advancements - The demand for high precision, response speed, and reliability in humanoid robots necessitates technological upgrades in materials, processes, and patents for planetary roller screws [9][11] - Chinese companies are leading in patent applications, accounting for 44% of the total, indicating a significant growth phase in the domestic planetary roller screw industry [11][12] Market Dynamics - The market for planetary roller screws in China is projected to reach 1.313 billion yuan in 2024, reflecting a year-on-year growth of 19.26% [13] - The global market is dominated by German company Schaeffler, with significant shares held by Swiss and Swedish subsidiaries, while domestic manufacturers are still in the R&D or small-scale verification stages [12][15] Policy Support - The Chinese government is actively supporting the development of humanoid robots, with guidelines aiming for an 80% domestic market share in high-end functional components by 2025 [9][10]

Investment Rating - The report initiates coverage with a "Buy" rating for the company [6]. Core Views - The company is a leading player in the precision structural components industry, with a strong focus on lithium battery and automotive structural components, maintaining approximately 95% revenue contribution from lithium battery structural components [2][3]. - The company is expected to achieve revenue of 12.03 billion yuan in 2024, representing a year-on-year growth of 14.4%, and a net profit of 1.47 billion yuan, up 22.5% year-on-year [2]. - The report highlights the company's robust growth potential in the lithium battery structural components market, driven by the increasing demand from the new energy vehicle and energy storage sectors, with a projected annual compound growth rate of 17% for global new energy vehicle sales from 2024 to 2030 [3][33]. Summary by Sections 1. Company Overview - The company has nearly 30 years of experience in the precision structural components industry, focusing on lithium battery and automotive structural components [2][14]. - The company has established a strong business foundation and is actively expanding its production capacity both domestically and internationally, with new production bases in Germany, Sweden, and Hungary [15][21]. 2. Market Growth and Competitive Advantages - The lithium battery structural components market is expected to maintain high growth, supported by the dual drivers of power and energy storage [31][37]. - The company possesses significant competitive advantages, including strong customer customization, distributed production capacity close to core clients, and a commitment to R&D with over 20% of its workforce dedicated to research [3][65]. 3. Robotics Sector Expansion - The company is actively entering the robotics sector through partnerships, establishing joint ventures to develop harmonic reducers and joint modules [4][81]. - The robotics market is anticipated to experience substantial growth, with supportive government policies and increasing demand for humanoid robots [71][77]. 4. Financial Projections and Investment Recommendations - Revenue projections for 2025-2027 are 14.81 billion, 17.81 billion, and 21.42 billion yuan, with corresponding net profits of 1.77 billion, 2.17 billion, and 2.69 billion yuan, indicating strong growth potential [4][5]. - The report emphasizes the company's strong R&D capabilities and business foundation, suggesting that it is well-positioned to expand its market share and explore high-growth opportunities in the robotics sector [4][65].

Group 1 - The company Longying Precision (300115.SZ) reported significant growth in humanoid robot component products this year [2] - Currently, the company does not have products applied to robotic dogs, despite the potential for a broad supply chain in this industry [2]

Summary of Conference Call Notes Company Overview - The company discussed is **克拉利 (Kedali)**, which operates in the lithium battery structural components industry and has a significant presence in the robotics sector, particularly in the development of new types of torque sensors [1][15]. Key Points and Arguments Financial Performance - The company maintains a leading position in profitability within the industry, with a current valuation around **16 times** earnings, indicating a high margin of safety [1]. - Projected earnings for the year are approximately **900 million**, with a target valuation of **25 times** earnings, reflecting strong growth potential [1]. - In **2024**, the company achieved revenues of **12 billion**, with a year-on-year growth of **14%** [3]. - The company expects revenue growth to recover to over **20%** in **2025** [4]. Market Position - The company holds over **50%** market share domestically and around **30%** globally in the lithium battery structural components sector [2]. - The management team has extensive experience, with key figures having over **25 years** in the industry [2]. - The company has a strong customer base, including major battery manufacturers, which provides stability and growth opportunities [11]. Industry Dynamics - The lithium battery structural components account for about **8%** of battery costs, significantly impacting safety and performance [4]. - The market for cylindrical and prismatic batteries is projected to reach approximately **1,200 GWh** by **2025**, indicating substantial demand growth [5]. - The industry is expected to see improved supply-demand dynamics, with reduced pricing pressure compared to **2024** [6]. Competitive Advantages - The company has a competitive edge due to its high automation rates and production efficiency, leading to lower costs compared to second-tier manufacturers [10]. - The company has maintained a gross margin advantage of over **10%** compared to competitors [7][8]. - The company invests heavily in R&D, maintaining a budget of around **50 million** annually, which supports innovation and product development [11]. Robotics Sector - The company is expanding into the robotics market, focusing on lightweight torque sensors that enhance efficiency and performance [16]. - The new products are designed to reduce weight by **66%** and increase torque-to-weight ratios by **71%** [16]. - The company anticipates significant revenue contributions from the robotics segment, projecting revenues of **1 billion** by **2030** [21]. Future Outlook - The company is expanding its overseas production capabilities, with facilities in Hungary, Germany, and Sweden expected to contribute significantly to revenue growth [13][14]. - The overall revenue forecast for **2025** is **14.7 billion**, with a projected net profit of **1.88 billion**, reflecting a **28%** year-on-year growth [22]. - The current valuation presents a high margin of safety, with potential for further growth in both the structural components and robotics sectors [22][23]. Additional Important Insights - The company’s strategic partnerships with leading battery manufacturers enhance its market position and growth prospects [11]. - The competitive landscape is characterized by a steep cost curve, making it difficult for new entrants to compete effectively [9]. - The company’s focus on high-end products and innovative materials positions it well for future growth in both existing and new markets [12][20].

Core Viewpoint - TE Connectivity's Suzhou factory exemplifies the critical role of connectors in robotics, serving as the "nervous system" that connects various components, thereby determining the technological capabilities and application scenarios of robots [1][6]. Group 1: Connector Manufacturing Challenges - The development and mass production of new connectors face inherent contradictions between long mold cycles and cost control, which directly impact product costs and market competitiveness [2]. - Balancing technical performance with scalable mass production will be key to future success in the connector manufacturing sector [2]. Group 2: Importance of Connectors in Robotics - Connectors, while small and accounting for only 1%-2% of a robot's Bill of Materials (BOM), are crucial in defining the technological limits of robots [6][9]. - A humanoid robot may utilize 100-200 connectors, and any performance mismatch can lead to operational failures in real-world scenarios [6][9]. Group 3: Design and Production of Connectors - Connectors come in various forms and require multiple manufacturing steps, including injection molding, stamping, and plating, to achieve the final product [7][8]. - The production of connectors involves significant investment in molds, with hard molds taking at least three months to develop, while soft molds can be produced in about three weeks for smaller batches [13][12]. Group 4: Market Demand and Investment Trends - The humanoid robot sector is characterized by inconsistent market demands, leading to challenges in mass production decisions for connector manufacturers [15]. - Recent investments in the sector include a 10 billion yuan project by Wuzhou Xinchun for core components of intelligent robots and automotive systems, indicating a growing interest in this field [16]. - Companies like Sanhua Intelligent Control have announced investments of at least 5 billion yuan in robotics-related projects, highlighting the competitive landscape for component manufacturers [17]. Group 5: Future Focus Areas - The industry must focus on achieving a balance between miniaturization, stability, and mass production costs while collaborating with upstream and downstream clients to design more adaptable products [18].

Core Viewpoint - Significant investments in the robotics industry primarily serve as an entry ticket for upstream component manufacturers, particularly in connector production, which plays a crucial role in the functionality and application of robots [1][16]. Group 1: Connector Importance - Connectors are essential components in robotics, acting as the "nervous system" that facilitates power and signal transmission between various parts [1][4]. - Despite accounting for only 1%-2% of the total bill of materials (BOM) cost of a robot, connectors significantly influence the technological capabilities and application limits of robotic systems [4][10]. - The performance of connectors, including speed and reliability, is critical for the effective operation of robots in real-world scenarios [4][10]. Group 2: Manufacturing Challenges - The development and mass production of new connectors face inherent conflicts between long mold cycles and cost control, which directly impact product costs and market competitiveness [2][11]. - The production process for connectors involves multiple stages, including injection molding, stamping, and electroplating, which contribute to the complexity and cost of manufacturing [5][9]. - Custom connector production requires significant investment in mold development, with hard molds taking at least three months to transition from design to mass production [13]. Group 3: Market Dynamics - The demand for connectors in humanoid robots is inconsistent, with manufacturers having varying requirements based on their previous industry experiences [14][16]. - TE Connectivity has adopted a strategy of initially producing standardized connectors before moving to customized designs as market needs become clearer [11][14]. - The robotics sector is witnessing increased investment from both established suppliers and new entrants, indicating a competitive landscape for core component manufacturing [16][17]. Group 4: Future Outlook - Continuous technological innovation and rapid response capabilities are essential for maintaining competitiveness in the robotics component market [14][17]. - The focus for manufacturers should be on balancing miniaturization, stability, and production costs while collaborating closely with upstream and downstream partners [17].

Summary of Harmonic Reducer Conference Call Industry Overview - The harmonic reducer market is expected to see significant growth due to the rising demand from humanoid robots, with annual production potentially reaching 1 million units, leading to a demand of 10 million units, five times the current market demand, indicating a market potential of hundreds of billions to thousands of billions [1][4][27]. Market Dynamics - The current harmonic reducer market is dominated by Harmonic Drive, holding over 50% market share, followed by Greentech with around 15%, and emerging domestic companies holding a small portion [1][5]. - The global harmonic reducer market size is approximately 3 billion RMB, with an annual demand of about 2 million units, primarily for industrial robots. The demand is expected to grow at an annual rate of about 10% [1][16]. Key Insights - The core barriers in the harmonic reducer market include material selection (high fatigue resistance and purity), high-precision gear design, and advanced manufacturing equipment. The material of the flexible wheel is particularly critical as it directly affects product lifespan and efficiency [1][2][7]. - Humanoid robots primarily utilize planetary and harmonic reducers, with harmonic reducers being favored for their compact size and high precision, especially in upper body joints [1][8][9]. Competitive Landscape - The competitive landscape is shifting, with domestic manufacturers increasing their market share. Companies like Laifu, Dazhu, and new entrants such as Slin and Kodali are planning to launch production capacities by 2025 [3][5][21]. - The market is expected to face a supply-demand imbalance starting in 2027 if humanoid robots reach the anticipated scale, with demand potentially exceeding supply [3][22]. Investment Opportunities - The humanoid robot sector presents a promising investment opportunity, particularly for companies with strong technical and engineering capabilities, such as Greentech, Kodali, and Slin, which are expected to be key players in the future [6][41]. Production and Manufacturing - The production process of harmonic reducers involves several critical steps, including material selection, high-precision gear design, and advanced manufacturing techniques. The manufacturing process is expected to be tightly controlled to ensure product quality and performance [7][15]. Future Projections - By 2030, the demand for harmonic reducers in humanoid robots could reach 3.5 million units, with a market space estimated at over 30 billion RMB. The industry is expected to see significant growth, driven by advancements in technology and increased production capacities [27][29]. Company-Specific Insights - Harmonic Drive is a major supplier for Tesla, with a global capacity of about 2 million units but currently operating at only 50% capacity. The company has faced challenges, including a decline in revenue due to the pandemic [30]. - Greentech has made significant progress in the Tesla robot project, receiving small batch orders and planning to expand capacity to meet future demand [31]. - Kodali has shown strong performance in the structural components sector and is actively developing harmonic reducers, with a focus on innovative materials [32]. - Other companies like Meihu and Fengguang Precision are also gaining traction in the domestic market, indicating a competitive landscape with potential for growth [33]. Conclusion - The harmonic reducer industry is poised for substantial growth driven by the demand from humanoid robots and advancements in technology. Companies with strong manufacturing capabilities and strategic partnerships, particularly with major players like Tesla, are likely to emerge as leaders in this evolving market.

Group 1: Aluminum Industry Insights - Citic Securities predicts a 5% growth in electrolytic aluminum demand in 2024, indicating strong resilience against the decline in real estate sector consumption [1] - Despite concerns over export competition and preemptive aluminum consumption in solar energy, the global electrolytic aluminum market remains balanced [1] - Low inventory levels and weak supply elasticity suggest that aluminum prices can withstand weak consumption cycles while being highly elastic during strong consumption periods [1] Group 2: Robotics Industry Developments - Huaxi Securities emphasizes that dexterous hands are crucial for the successful deployment of humanoid robots, with ongoing updates presenting significant technical challenges [2] - Manufacturers with the capability to design and produce dexterous hands are expected to gain substantial influence in the supply chain and achieve superior profitability [2] - The development of humanoid robots will create new market opportunities for component manufacturers, with a focus on key parts such as screws, reducers, motors, tendons, and tactile sensors [2]